Before you buy a franchise, know your employment law

Sarah Stowe

In the wake of the 7-Eleven underpayment fiasco, potential franchisees need to go over Australian employment laws with a fine-tooth comb. We have a look at key aspects of offering employment and its entitlements.

Fresh allegations in a report by Inside Retail suggest that one 7-Eleven staff member was paid 47c an hour. To avoid falling in hot water, franchisees need to be well versed in worker rights, pay, and entitlements.

When offering employment, there are some key features of the formal letter of employment which should be considered if applicable to the type of employment:

  • Annual leave;
  • Redundancy pay;
  • Eligibility for unpaid parental leave;
  • Eligibility to request for a flexible workplace arrangement; and
  • Eligibility for unfair dismissal remedies.

The national minimum wage and the National Employment Standards (NES) comprise of the minimum entitlements for employees in Australia. All employees in the national workplace relations system are covered by the NES regardless of the award, registered agreement or employment contract in place.

The 10 minimum entitlements of the NES are as follows:

  • Maximum weekly hours
  • Requests for flexible working arrangements
  • Parental leave and related entitlements
  • Annual leave
  • Personal carers leave and compassionate leave
  • Community service leave
  • Long service leave
  • Public holidays
  • Notice of termination and redundancy pay
  • Fair Work Information Statement

Casual employees only receive NES entitlements relating to:

  • unpaid carer's leave
  • unpaid compassionate leave
  • community service leave
  • the Fair Work Information Statement.

Employers and employees seeking further information can visit or contact the Fair Work Infoline on 13 13 94.

Interpreter services are available by calling 13 14 50, as well as information and helpful materials on the website, available in 27 different languages.